#6 Action on request of economic development grant for Sneakers Sports Bar & Grill
COMMUNITY DEVELOPMENT DEPARTMENT
October 5, 2010
TO: Janesville City Council
FROM: Gale S. Price, AICP, Manager of Building and Development Services
SUBJECT: Action on a Request from MCDJ LLC (DBA as Sneakers Sports Bar and Grill),
1221 Woodman Road, for an Economic Development Grant.
Executive Summary
In 2002 the City Council adopted an ordinance to establish an Economic Development Grant
program to permit the City Council to approve economic grants to those establishments that
obtain a Reserve Class B liquor license. Based on specific criteria the City Council may
approve such grants up to the one-time $10,000 Reserve Class B liquor license fee. MCDJ LLC
represented by Matt and Connie DeWitt have requested an Economic Development Grant for
their Reserve Class B license which was issued earlier this year.
Committee and Staff Recommendation
The Alcohol License Advisory Committee and the Community Development Department
recommend that following the City Council review, a motion to approve an Economic
Development Grant in the amount of $10,000 for Sneakers Sports Bar and Grill be approved.
Suggested Motion
Motion to approve an Economic Development Grant in the amount of $10,000 for Sneakers
Sports Bar and Grill.
Request
The City Clerks Office has received a written request for a $10,000 Economic Development
Grant from Matt and Connie DeWitt, owners of Sneakers Sports Bar and Grill. The use was
issued a Reserve Class B license earlier this year and has paid their initial $10,000 Reserve
Class B license fee with their application.
Background
Alcohol licenses are regulated by State Statute Chapter 125 and Janesville Code of General
Ordinances Chapter 5. In 1997, the State reduced the number of Class B licenses that a
municipality may issue and created a new Reserve Class B alcohol license. A Class B license
and a Reserve Class B license are the same except for the cost. A Class B license costs $600
per year and a Reserve Class B license costs $600 per year plus a one-time fee of $10,000
when the license is initially issued. The fees are paid to and retained by the City.
Since the enactment of this Reserve Class B license fee, several cities in Wisconsin have
created an economic development grant program which in effect refunds all or part of the initial
$10,000 fee. In 2002, the City Council adopted an ordinance to establish such an Economic
Development Grant Program to allow the City Council to issue a one-time non-repayable grant
to businesses who receive a Reserve Class B License. According to the ordinance, after
submission by the applicant of a written application to the City Clerk for a grant, the City Council
may provide an Economic Development Grant to the licensee in an amount not to exceed
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$10,000 following a review and recommendation from the Alcohol Licensing Advisory
Committee (ALAC).
The ordinance further provides that the City Council may consider the following criteria when
determining whether to grant all or part of the $10,000 grant to a particular applicant:
1. That the extent to which the license and/or the grant will promote a redevelopment or
rehabilitation project in the downtown or other commercial areas including the amount of
investment, the extent of rehabilitation, historic preservation and public improvement
effectuated, and related revitalization, health, welfare, peace and public good order
factors.
2. That the applicant demonstrates that their investment and the establishment issued the
Class B reserve intoxicating liquor alcohol beverage license is equal to or greater than
the dollar amount of the grant request.
3. That the Class B reserve establishment is located at least 300 feet from any residential-
zoned area.
Analysis
The Community Development Department has evaluated this request based on the above
criteria and believes that the entire $10,000 initial license fee could be refunded as a grant.
Staff’s findings are based on the following:
1. While the property is not located within the downtown area, it is located on the south end
of the Milton Avenue commercial corridor in an area that is in need of redevelopment.
This project is considered to be an in-fill development as it is re-using a portion of the
Rogan’s Shoe space and space formerly occupied by a Basics Food Co-op.
2. The owner was required to make extensive modifications to the building to meet current
building and plumbing codes including installation of a grease interceptor, kitchen
construction and HVAC modifications to accommodate all of the cooking equipment
within the building. The investment to modify the existing facility is anticipated to
increase the property value of the property in that the owners will have invested over
$200,000 for the building. This amount of investment substantially exceeds the $10,000
initial license fee.
3. The establishment is not located greater than 300 feet from a residentially-zoned area.
The site is located 225 feet from the closest residentially zoned lot, but the use was
required to be approved through a conditional use permit process which is designed to
protect the nearby residences. There have been no complaints lodged to the
Community Development Department regarding the bar at this time. Staff believes the
use meets the intent of the criteria.
The Alcohol Licensing Advisory Committee reviewed this request at their October 5, 2010
meeting and unanimously voted to forward the request to the City Council with a positive
recommendation.
cc: Eric Levitt
Jacob J. Winzenz
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